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It is more likely to kill almost all deposits. The bank wouldn't really profit from stored money so they will want fee for keeping money. Interesting experiment
by ucho 11y ago
It is more likely to kill almost all deposits. The bank wouldn't really profit from stored money so they will want fee for keeping money. Interesting experiment but I definitely wouldn't want it to happen in my country.
- lxgr 11y agoOnly if central bank deposits do not bear interests. If they do, depositing money at a commercial bank would increase that bank's central bank balance. If the central bank's deposit interest rate is higher than the commercial bank's, this would generate a profit for the commercial bank. In the Eurosystem, for example, minimum reserves bear interest even today; only excess reserves are "punished" by negative interest rates.
- tonfa 11y agoThere's already no or negative interest rates for deposits in CHF.